ATLANTA – Home Depot Inc. said cost-cutting and gains in sales of items such as paint, flooring and plumbing helping it move to a fourth-quarter profit.
Consumers cut back on home-improvement projects during the recession and housing slump, but conditions have slowly started to improve, causing more to take on big projects.
Improved profitability led the largest U.S. home-improvement retailer to boost its quarterly dividend for the first time since 2006 and give a 2010 profit forecast above analysts’ expectations.
Home Depot’s stock gained 17 cents to $30.49 in premarket trading.
The company earned $342 million, or 20 cents per share, for the quarter. Adjusted earnings were 24 cents per share, which removed a $163 million writedown related to its HD Supply investment.